Start contributing early in the year and early in your career:
Speak with your advisor about setting up a pre-authorized chequing account (PAC). This simple investment strategy lets you purchase mutual fund securities on a periodic basis, such as weekly, monthly or quarterly, in a predetermined amount. Amounts as small as $50 per month are easily deducted from your personal bank account. Your financial advisor can help you determine the frequency and investment amount that works best for you.

Dollar cost averaging: An extra PAC plan benefit
One of the best ways to guard against buying at the top of the market – when investments are at their most expensive – is to invest a set amount of money each month. Investing through a Mackenzie PAC plan is an easy way to take advantage of a technique known as “dollar cost averaging.” With dollar cost averaging, you enter the market gradually, buying more shares when the price is low, and fewer when the price is high. In a fluctuating market, this can help reduce the total price paid for your portfolio and may lead to better overall investment returns. With dollar cost averaging, the emphasis is on long-term accumulation and growth of capital.

Consider a spousal RRSP
If your spouse earns less than you, and will likely have a lower income at retirement, it may make sense to contribute to an RRSP in your spouse’s name, but claim the deduction yourself. Your total contributions (to your own and your spouse’s plans) are subject to your normal contribution limits but in retirement withdrawals will be taxed in your spouse’s hands, rather than yours. So you benefit from their lower tax rate in retirement, while reducing your own tax during your working years. There are rules governing early withdrawals of RRSP funds before retirement, but in retirement this is an excellent option for many families.

A world of opportunities
In 2005, the federal government removed the 30% limit on foreign content for registered plans allowing for greater global portfolio diversification. Canada represents only 3 percent of the world’s stock market capitalization, which is a relatively small portion of the world’s equity market. With most of the world’s investment opportunities outside of our borders, global investing lets you diversify across economies and markets and participate in growth around the world.

Borrowing to invest can make it easier
An RRSP loan can work in your favour if you pay it off promptly and if your RRSP is earning a good rate of return. Your financial advisor will provide details about Mackenzie’s online RRSP loans, available through MRS Trust Company.